PMI in expansion territory for first time since February

The BLOM Lebanon PMI rose to 50.3 in June, from 49.7 in May, returning to the expansion territory for the first time in four months. Growth was driven by new orders, where the rate of increase reached a four-month high, with output growth also rising to a four-month high to meet rising demand. New orders were likely supported by the ceasefire renewal in early June and the establishment of a “pilot zone”, even if imperfect. In details, new domestic orders led this growth, probably due to the partial return of internally displaced persons, who resumed normal consumption and home repairs, alongside a shift toward local products as new taxes on imported goods that generate waste after use made local products more attractive to consumers. Meanwhile, new export orders remained in contraction, but their rate of decline slowed probably due to the resumption of Lebanese export access to Saudi Arabia. Notably, on June 29, after data collection ended, the United Arab Emirates has lifted its travel ban on Lebanon, allowing Emirati citizens to visit the country. This move is expected to lift new export orders in July off the contraction zone as it includes both the manufacturing and services sectors.

For the full Macro report, click HERE.

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For the full PMI reports, click HERE for the English version and HERE for the Arabic version.